Novedades  News from the National Law Center for Inter-American Free Trade

Volume 5, Number 2 February 1998

A set of recommendations aimed at guiding companies through the process of transporting goods and merchandise between the NAFTA countries will soon be released by the Center.
The study, entitled “North American Standard  Practices for the International Motor Transportation of Merchandise,” is the result of a series of meetings involving members of the North American Committee on Surface Transportation Law and Practice (NACST).

The Center created NACST in January 1994 with the primary goal of developing a uniform North American regime for carrier liability for loss or damage to merchandise.
The practices are a detailed examination of every aspect of freight transportation and may serve as the basis of a contract between the shipper and the carrier, a company service guide or manual, and to resolve shipper-carrier disputes.

Specific attention was given to shipments entering and exiting Mexico, due to the actual differences in Mexican and U.S./Canadian transportation laws. For instance, documentary practices in Mexico differ greatly from those in use in the United States and Canada: bills of lading issued by Mexican carriers must satisfy regulations to which U.S carriers are not subject, thus generating disparities and conflicts between parties.
Another major concern of the study is clarifying the applicable laws of carrier liability for loss or damage among the three North American countries. In Mexico, for instance, “transportation law allocates to the carrier very little financial risk for loss or damage to   merchandise.”

NACST made substantial progress in the development of a uniform liability regime. This progress halted in December 1995 when the United States Department of Transportation announced that it would not allow Mexican carriers to enter the United States beyond the border commercial zones unless certain issues were resolved with the Mexican government. Since that time, there has been no resolution and the transportation practices remain the same.

According to Dr. Boris Kozolchyk, “these rules of practice will provide a substantial benefit to carriers, manufacturers, shippers and importers who are currently involved in trade in North America, and those that are considering a future involvement.” Dr. Kozolchyk added that until the border is opened, the practices outlined in the Center’s recommendations will continue as the status quo. “If and when the border is opened, the rules of practice will be amended to reflect the subsequent changes in transportation practices at the border,” he said.

“North American Standard Practices for the International Motor Transportation of Merchandise,” will initially be available in English only. (A bilingual English/Spanish version is planned.) English copies  are expected to be available this spring. For order information, please contact George Arden, 520/622-1200.

Seminar Addressed Chemical Emergency Services Issues Along U.S./Mexico Border

A seminar hosted by the Center recently addressed the need for better chemical emergency services along the U.S./Mexico border. The seminar was presented in Phoenix on Dec. 9 and in Tucson on Dec. 17.
Numerous chemical emergency incidents highlighted during the seminar illustrated that authorities on both sides of the border are not fully prepared to respond to such scenarios.

Mike Foster of the Arizona Department of Environmental Quality emphasized the need to better equip local officials and he noted that budgetary limitations make it difficult for local authorities in border communities to respond to these emergencies. He also stated  that county and municipal tax funds are often not even adequate to cover personnel costs needed to maintain adequate emergency response staff — let alone purchase equipment — and that other government funds have not been created to remedy this problem.

Joe Agosttini from the U.S. Customs Service Nogales Port of Entry and U.S. Customs agent Robert Long (who substituted for Mr. Agosttini at the Tucson seminar) both discussed initiatives launched by U.S. Customs at the Nogales port to establish a registry of hazardous materials transporters using the facility. This registry should reduce the uncertainty of shipment contents as they arrive at the port, thereby reducing the risk of injury to port personnel, the community, and the area environment.  The program is being considered for implementation at all U.S. ports of entry.

My portion of the program included mention that although appropriate laws and policies exist in and between the two countries to address unexpected chemical spills and releases, gaps are also present. These gaps must be addressed before public and environmental safety can be assured. I emphasized that the lack of administrative mechanisms for supplying emergency equipment to response units in communities along the border is especially significant because those government officials are the first on the scene when incidents occur. I also outlined pertinent U.S. and Mexican laws, noting that responsibility for resolution of this problem belongs with federal authorities in the two countries since the need for these services along the border stems from international trade.

Richard Flores, fire chief of the Tohono O’Odham Nation also provided commentary at the close of the Tucson seminar. Tohono O’Odham lands occupy a significant portion of the Arizona/Sonora border and are often utilized as a thoroughfare for commercial truck traffic, including vehicles transporting hazardous materials.

Both events were co-sponsored by the Center, the Arizona Department of Commerce, and the Arizona-Mexico Commission.  The Center thanks the law firm of Fennemore Craig for the use of its Phoenix facilities.

Amy Mignella is the Center's environment project coordinator. A study she drafted addresses chemical emergency response issues that exist along the U.S./Mexico border. Entitled “Chemical Emergency Service Capabilities & Constraints Along the U.S./Mexico Border,” the study is available through the Center. To order a copy, please call George Arden at 520/622-1200.

Agenda

• On Jan. 23, David Eaton, the Center’s maquiladora project coordinator, participated in the Environmental Law on the Border CLE-International conference, held in San Antonio, Tex. His presentation addressed the need for creative financing mechanisms for environmental infrastructure in the border region as well as the need to provide working capital loans to Mexican companies so that they can purchase much needed anti-pollution equipment.
• On Feb. 25, Dr. Boris Kozolchyk will speak at the first seminar of the Tucson Metropolitan Chamber of Commerce Mexico Seminar Series. The seminar will provide participants with an overview of NAFTA’s impact on U.S./Mexico trade relations. Dr. Kozolchyk will give an update of the Center’s activities and will discuss how private enterprises can benefit from the Center’s resources in their commercial efforts in Mexico and Latin America.
• On March 26, Amy Mignella, the Centers’ environment project coordinator, will take part in the conference on Judicial Cooperation Along the U.S. Border, to be held in Albuquerque, N.M. She will talk about “The jurisdiction of U.S. federal agencies outside the U.S.: Some projections on the future role of the U.S. Environmental Protection Agency.”

Center Welcomes New Member

The Center welcomes Saul N. Winsten, Esq., of Michael Best & Friedrich in Milwaukee, Wis., as a new regular member. Michael Best & Friedrich, which also
has offices in Madison, Wis., and Chicago, Ill., is a full service, corporate-oriented firm with expertise in all specialities likely to be required by large and small business clients. The firm is also a member of Lex Mundi.

If you would like to support the Center and/or to become a member, please contact Kevin O'Shea, development director, at 520/622-0957; kjoshea@natlaw.com.

Media Coverage

•A story highlighting issues of hazardous emergency response along the border (see “Seminar Addressed Chemical Emergency Response Along Border”) was aired on CBS-affiliated station KOLD Channel 13 (Tucson) on Dec. 13, 1997.
•“El National Law Center es clave para nuestra ciudad,” by Ernesto Portillo, Tucson Citizen, Dec.17, p.11A.
•“Sinóninimo: Derecho Internacional y Boris Kozolchyk,” by Ernesto Portillo, Tucson Citizen, Dec. 26.
•“La Transformacion de la Proveduria para la Industria Maquiladora,” by David Eaton, El Financiero, Dec. 23, 1997. This article discusses the future of the $40 billion annual maquiladora suppliers market, including the dramatic transformation this industry will experience as a result of NAFTA.
•“Mexico Meets NAFTA IPR Requirement for Semiconductor Design,” Americas Trade, Jan. 8, 1998, Vol. 5, No.1. The article quotes Alejandro Pérez Serrano, the Center’s intellectual property project coordinator, on the recent amendments to the Mexican Industrial Property Law.
•“La Importancia de la Inversión Asiatica en la Industria Maquiladora,” by David Eaton, El Financiero, Jan. 15, 1998. The article addresses the importance of Asian investment in the maquiladora industry, highlighting the field research performed by the Center in this area.

Calendar of Events

FEB. 26-27, DALLAS, TEX.
2nd Annual North American Seminar on Income & Productivity
This seminar will focus on income and productivity and the linkages between them within the labor markets. This year’s themes are multi-sector analysis of earnings and productivity, and incomes and productivity in the auto industry of North America. Contact: Commission for Labor Cooperation, Mr. Alfredo Hernandez, tel:  214-754-1114; fax: 214-754-1199; e-mail: alfredoh@naalc.org

MARCH 5-7, CIUDAD JUÁREZ, MEX.
Meeting on the Border Environment
A gathering for non-government organizations, community-based organizations, government, industry and scholars. Contact: Latin American Area Center, 520/626-8197; bordenv@u.arizona.edu; website: http://w3.arizona.edu/~laac/borconf.htm.

MARCH 23-25, SAN DIEGO, CAL.
12th Annual MexCon '98
Maximizing competitiveness with U.S./Mexican manufacturing operations through workshops, sessions and joint presentations and networking activities. Contact: Steve Reynolds, 800/345-8016 ext.305 ; Web site: http://www.iir-ny.com.

APRIL 22-24, DELICIAS, CHIH., MEXICO
Experience Business in Mexico
The 3-day seminar will provide information for entrepreneurs and service providers who want to develop international trade. Hosted by the University of Chihuahua. Contact: NAFTA Institute, 505/538-6320; fax: 505/538-6341; e-mail: sbdc@silver.wnmu.edu.

JUNE 23-25, NEW YORK CITY, NY
Inter-American Banking Conference
The conference is designed to promote harmonization of banking practices throughout Latin America. Contact: Constantino Flores, 520/622-1200; cflores@natlaw.com.

 InterAm_smUpdates

BRAZIL
•Decreto 22.626 Dispõe sobre os Juros nos Contratos e dá outras Providências.  07-IV-1933.
•Medida Provisória 1.531-11 Altera dispositivos das Leis nos 8.666, 8.987, 9.074, 9.427, autoriza o Poder Executivo a promover a reestruturação da Centrais Elétricas Brasileiras S.A. ELETROBRÁS e de suas subsidiárias, e dá outras providências.
•Legislative Decree 100 Approving the text of the Rectification Proceedings of the Additional Protocol concerning Navigation and Security to the Agreement of Fluvial Transportation through the waterway Hidrovia Paraguay-Parana (Porto de Caceres - Porto de Nova Palmira).  03-VII-1995.
ECUADOR
•Codificación de la Ley sobre el Banco Ecuatoriano de la Vivienda y Asociaciones Mutualistas de Ahorro y Crédito para la Vivienda.  14-V-1975.
MEXICO
•Acuerdo que modifica y adiciona al diverso que identifica las fracciones arancelarias de la Tarifa de la Ley de Impuesto General de Importación, en las cuales se clasifican las mercancías cuya importación está sujeta al pago de cuotas compensatorias.  16-XII-1997.
•Resolución del H. Consejo de Representantes de la Comisión Nacional de los Salarios Mínimos que fija los salarios mínimos generales y profesionales vigentes a partir del 1 de enero de 1998.  23-XII-1997.
•Decreto por el que se reforma y adiciona la Ley de la Propiedad Industrial.  26-XII-1997.
•Ley Federal para el Control de Precursores Químicos, Productos Químicos Esenciales y Máquinas para Elaborar Cápsulas, Tabletas y/o Comprimidos.  26-XII-1997.
•Decreto que reforma el Reglamento de la Ley del Impuesto al Valor Agregado.  29-XII-1997.
•Ley de Ingresos de la Federación para el Ejercicio Fiscal de 1998.  29-XII-1997.
 

Headlines from the Inter-American Trade Report

BRAZIL
“Brazilian Real Estate Law Aims to Stimulate Markets,” by Levy Salomao Advogados.
COLOMBIA
“Modifications to Hydrocarbon Contracts,” by Gómez, Pinzón & Asociados.
PANAMA
“Migration or Relocation of Corporations,” by Roy Carlos Durling, Jr.
MEXICO
“Protection of Semiconductors,” by Alejandro Pérez Serrano.
& Recent developments in agriculture,  banking and credit, labor and more.

NOVEDADES
VOL. 5, NO.2

EDITOR
Virginie Drujon-Kippelen
CONTRIBUTING EDITOR
Lisa Button

NOVEDADES is published monthly by the National Law Center for Inter-American Free Trade, a non-profit research and educational corporation whose purpose is to facilitate trade and investment in the Western Hemisphere.

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Check past issues of NOVEDADES at  http://www.natlaw.com/novedad.htm